ANHEUSER-BUSCH INBEV-SPN ADR (BUD)
US03524A1088 - ADR
We assign a fundamental rating of 4 out of 10 to BUD. BUD was compared to 33 industry peers in the Beverages industry. While BUD is still in line with the averages on profitability rating, there are concerns on its financial health. BUD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
BUD had positive earnings in the past year.
BUD had a positive operating cash flow in the past year.
BUD had positive earnings in each of the past 5 years.
In the past 5 years BUD always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.43%, BUD is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
BUD has a worse Return On Equity (6.52%) than 68.75% of its industry peers.
The Return On Invested Capital of BUD (6.22%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for BUD is significantly below the industry average of 12.06%.
The 3 year average ROIC (6.15%) for BUD is below the current ROIC(6.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 6.52% | ||
| ROIC | 6.22% |
ROA(3y)2.46%
ROA(5y)2.38%
ROE(3y)7.15%
ROE(5y)7.13%
ROIC(3y)6.15%
ROIC(5y)5.9%
1.3 Margins
Looking at the Profit Margin, with a value of 8.99%, BUD is in line with its industry, outperforming 46.88% of the companies in the same industry.
In the last couple of years the Profit Margin of BUD has grown nicely.
BUD has a better Operating Margin (24.57%) than 78.13% of its industry peers.
BUD's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 53.86%, BUD is doing good in the industry, outperforming 68.75% of the companies in the same industry.
BUD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.57% | ||
| PM (TTM) | 8.99% | ||
| GM | 53.86% |
OM growth 3Y-2.27%
OM growth 5Y-5.36%
PM growth 3Y44.25%
PM growth 5Y1.77%
GM growth 3Y-2.5%
GM growth 5Y-2.91%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BUD is creating some value.
BUD has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, BUD has more shares outstanding
Compared to 1 year ago, BUD has an improved debt to assets ratio.
2.2 Solvency
BUD has an Altman-Z score of 1.55. This is a bad value and indicates that BUD is not financially healthy and even has some risk of bankruptcy.
BUD has a Altman-Z score of 1.55. This is in the lower half of the industry: BUD underperforms 62.50% of its industry peers.
The Debt to FCF ratio of BUD is 9.06, which is on the high side as it means it would take BUD, 9.06 years of fcf income to pay off all of its debts.
BUD has a worse Debt to FCF ratio (9.06) than 62.50% of its industry peers.
BUD has a Debt/Equity ratio of 0.91. This is a neutral value indicating BUD is somewhat dependend on debt financing.
BUD has a Debt to Equity ratio of 0.91. This is comparable to the rest of the industry: BUD outperforms 46.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 9.06 | ||
| Altman-Z | 1.55 |
ROIC/WACC1.03
WACC6.05%
2.3 Liquidity
A Current Ratio of 0.63 indicates that BUD may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.63, BUD is doing worse than 87.50% of the companies in the same industry.
BUD has a Quick Ratio of 0.63. This is a bad value and indicates that BUD is not financially healthy enough and could expect problems in meeting its short term obligations.
BUD has a Quick ratio of 0.48. This is in the lower half of the industry: BUD underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
BUD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.17%.
Measured over the past years, BUD shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.43% on average per year.
The Revenue has been growing slightly by 2.76% in the past year.
Measured over the past years, BUD shows a small growth in Revenue. The Revenue has been growing by 2.28% on average per year.
EPS 1Y (TTM)-3.17%
EPS 3Y16.68%
EPS 5Y-2.43%
EPS growth Q2Q-16.33%
Revenue 1Y (TTM)2.76%
Revenue growth 3Y8.2%
Revenue growth 5Y2.28%
Revenue growth Q2Q-1.33%
3.2 Future
BUD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.19% yearly.
BUD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.73% yearly.
EPS Next Y10.31%
EPS Next 2Y12.55%
EPS Next 3Y16.61%
EPS Next 5Y13.19%
Revenue Next Year2.83%
Revenue Next 2Y6.19%
Revenue Next 3Y3.92%
Revenue Next 5Y3.73%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.91, BUD is valued on the expensive side.
Based on the Price/Earnings ratio, BUD is valued cheaper than 81.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.84, BUD is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.22, the valuation of BUD can be described as correct.
BUD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BUD is cheaper than 78.13% of the companies in the same industry.
BUD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.91 | ||
| Fwd PE | 16.22 |
4.2 Price Multiples
84.38% of the companies in the same industry are more expensive than BUD, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BUD is valued cheaper than 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.71 | ||
| EV/EBITDA | 9.09 |
4.3 Compensation for Growth
BUD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BUD's earnings are expected to grow with 16.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.74
PEG (5Y)N/A
EPS Next 2Y12.55%
EPS Next 3Y16.61%
5. Dividend
5.1 Amount
BUD has a Yearly Dividend Yield of 1.02%.
BUD's Dividend Yield is comparable with the industry average which is at 2.56.
With a Dividend Yield of 1.02, BUD pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
The dividend of BUD decreases each year by -17.56%.
BUD has paid a dividend for at least 10 years, which is a reliable track record.
BUD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-17.56%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
BUD pays out 56.42% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP56.42%
EPS Next 2Y12.55%
EPS Next 3Y16.61%
ANHEUSER-BUSCH INBEV-SPN ADR
NYSE:BUD (4/26/2024, 7:04:01 PM)
After market: 60.2 +0.19 (+0.32%)60.01
+0.07 (+0.12%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap118.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.91 | ||
| Fwd PE | 16.22 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 6.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.57% | ||
| PM (TTM) | 8.99% | ||
| GM | 53.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-3.17%
EPS 3Y16.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.31%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.76%
Revenue growth 3Y8.2%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y